Fed Faces Tough Sell on Low-Rate Strategy

Steadying Economy Poses Test on Key Easy-Money Policy

By

Jon Hilsenrath

Sept. 16, 2013 2:21 p.m. ET

Federal Reserve officials face a communication challenge explaining their interest-rate plans when they gather for a policy meeting this week.

Their updated economic projections could show an economy that appears back to normal by 2016, but their projections of where short-term interest rates will be could show rates still quite low by then. Their challenge: How to justify the low interest-rate plan when their own estimates suggest an...